The Andersons, Inc. (ANDE) 8-K Results of Operations and Financial Condition

NEWS RELEASE

Contact: Gary L. Smith
VP, Finance & Treasurer Date:

August 6, 2008

Phone: 419-891-6417

E-mail:gary_smith@andersonsinc.com

THE ANDERSONS, INC. REPORTS SECOND QUARTER RESULTS
Record Earnings Of $ 2.48 Per Diluted Share
The Plant Nutrient Group Leads Earnings Result

MAUMEE, OHIO, AUGUST 6, 2008—The Andersons, Inc. (Nasdaq: ANDE), today announced record second quarter net income of $45.6 million, or $2.48 per diluted share, on revenues of $1.1 billion. In the same three month period in 2007, the company reported net income of $25.5 million, or $1.40 per diluted share, on $634 million of revenues. For the first six months of 2008, the company’s net income was $53.4 million, or $2.91 per diluted share, on revenues of $1.8 billion. In the first half of 2007, The Andersons earned $34.7 million, or $1.90 per diluted share, on revenues of $1.0 billion.

The Grain & Ethanol Group’s record operating income of $20.0 million in the second quarter was significantly more than its year earlier result of $12.0 million. The grain business benefited from significantly improved margins on grain sales and the more than doubling of service fee income. The business, however, continues to be impacted by rising costs associated with higher grain prices. Specifically, interest expense increased more than $5.6 million in comparison to the prior period, and contract fair value adjustments were increased due to the increased risk of contract default associated with rising grain prices. Income from the ethanol joint ventures also grew during the most recent quarter. Second quarter income from the group’s investment in Lansing Trade Group was $5.1 million higher this year. Total second quarter revenues for the group were $696 million; this compares to total revenues of $324 million for the same period last year. While revenues for the group are higher, such amounts do not serve as good predictors of income or economic performance in a commodity based business. The Grain & Ethanol Group’s operating income through the first six months was $22.2 million in both 2008 and 2007. Total revenues through June 2008 and 2007 were $1.2 billion and $568 million, respectively.

The Rail Group’s operating income was $4.9 million in the second quarter on revenues of $43 million. Last year, the group reported $6.9 million of income and $42 million of revenues for the same three month period. The group recognized $1.1 million in gross margin from the sale of railcars and related leases during the quarter, however, in the second quarter last year it recognized gains of $4.1 million for similar sales. Gross profit from the leasing business was higher due to a higher utilization rate and growth in the size of the fleet. The group now has 23,840 cars and locomotives, which is 5 percent more than it had 12 months ago. The average utilization rate (the percentage of the fleet in service) for the quarter was 93.2 percent in comparison to 92.0 percent for the same period last year. The gross profit of the railcar repair business grew slightly during the second quarter due to the addition of a new repair shop in the second half of 2007. The group’s first half operating income this year was $11.3 million on $78 million of revenues. In 2007, operating income through June was $9.9 million and revenues were $68 million. Included in these results were gains on sales of railcars and related leases of $3.3 million and $5.0 million, respectively.

The Plant Nutrient Group achieved record operating income of $47.4 million during the second quarter of 2008 on revenues of $274 million. With these results, the group has had quarter income records for six consecutive quarters. The group reported a $17.1 million operating profit on $183 million of revenues in the second quarter of 2007. These exceptional earnings resulted from significant margin increases primarily resulting from inventory value appreciation stemming from its significant storage space and unprecedented escalation in basic nutrient prices. This escalation of plant nutrient prices, lower corn acres, and pre-season buying at the end of 2007 has led to a reduced sales volume when compared to last year. The group’s first half operating income this year was $54.9 million on $379 million of revenues. Last year, its operating income through the first six months was $17.5 million on revenues of $249 million The purchase of Douglass Fertilizer & Chemical Inc. that was completed last quarter has proven to be accretive to earnings, as expected. Yesterday, the group announced the purchase of three pelleted lime facilities in Ohio, Illinois and Nebraska. The acquisition allows the group to expand its value added product offering and further broaden its geographic territory.

The Turf & Specialty Group had operating income of $1.9 million in the second quarter this year on $36 million of revenues. Last year, the group reported $0.7 million of income on $30 million of revenues for the period. Turf products tonnage increased slightly from year to year, and gross profit per ton increased considerably, in spite of record high raw material prices this year, due to a larger percentage of sales coming from proprietary products such as Contec DG. Through the first half of 2008, the group’s operating income was $3.9 million on $76 million of revenues. Last year, its operating income was $2.5 million for the same period, and revenues were $67 million. The group, along with several partners, was recently awarded a $5.0 million grant by the state of Ohio for research and development expenses; this will be utilized to further develop technologically advanced and proprietary products.

The Retail Group reported revenues of $53 million for the second quarter of 2008, which is slightly below the $55 million in revenues reported for the same period in 2007. This sales decline is due to the overall decline in consumer spending. For the three month period, the group earned operating income of $3.4 million. In the comparable period last year, the group’s operating income was $3.6 million. Through six months the group has broken even on $86 million of revenues. Last year, operating income through June was $1.3 million and total revenues were $89 million. Margins have been reduced due to competitive sales pressure.

“Our second quarter and first half results are outstanding,” said President and Chief Executive Officer Mike Anderson. “Both our Plant Nutrient and Grain & Ethanol Groups contributed significantly to our income during the period. I want to extend special thanks to our Plant Nutrient Group team. The team has worked tirelessly to serve customers and optimize their inventory position, while simultaneously exploring multiple growth opportunities and integrating Douglass Fertilizer into their business. It was truly a team effort and to see their results is rewarding. We are also excited by the addition of the three pelleted lime facilities yesterday, as this acquisition, like Douglass Fertilizer, is consistent with our strategic goal of growing our business to a national footprint”

“Last week we revised our full year guidance to $5.00 — $5.40 per diluted share,” Mr. Anderson continued. “Our guidance was heavily influenced by the reported and expected performance of our Plant Nutrient Group. Numerous factors, however, will have a bearing on the full year outcome; basic nutrient prices, grain prices, timing of railcar sales, and the performance of our equity investments, which include the significant contributions of Lansing Trade Group and the ethanol production facilities.”

The company will host a webcast on Thursday, August 7, 2008 at 11:00 A.M. ET, to discuss its performance and full year outlook. This can be accessed under the heading “Investor” on its website atwww.andersonsinc.com.

The Andersons, Inc. is a diversified company with interests in the grain, ethanol and plant nutrient sectors of U.S. agriculture, as well as in railcar leasing and repair, turf products production, and general merchandise retailing. Founded in Maumee, Ohio, in 1947, the company now has operations in 11 U.S. states and Puerto Rico, plus rail equipment leasing interests in Canada and Mexico.

This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, and the risk factors set forth from time to time in the Company’s filings with the Securities and Exchange Commission. Although the Company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.

The Andersons, Inc. is located on the Internet atwww.andersonsinc.com

FINANCIAL TABLES FOLLOW . . .

1

The Andersons, Inc.
Consolidated Balance Sheets
(Unaudited)
	June 30		December 31		June 30
(in thousands)	2008		2007		2007
Assets
Current assets:
Cash and cash equivalents		33,379	$	22,300	$	28,945
Restricted cash		3,664		3,726		3,756
Accounts receivable, net		194,243		106,257		138,451
Margin deposits, net		79,017		20,467		27,139
Inventories		406,839		502,904		215,925
Commodity derivative assets — current		493,571		205,956		47,634
Other current assets		40,430		43,281		26,307
Total current assets		1,251,143		904,891		488,157
Investments and other assets		156,005		137,518		106,477
Commodity derivative assets		84,297		29,458		27,169
Railcar assets leased to others (net)		152,879		153,235		146,567
Property, plant and equipment (net)		110,146		99,886		99,117
	$	1,754,470	$	1,324,988	$	867,487
Liabilities and shareholders’ equity
Current liabilities:
Short-term borrowings	$	432,500	$	245,500	$	77,000
Commodity derivative liabilities — current		160,611		122,488		39,481
Other current liabilities		350,796		359,224		215,196
Total current liabilities		943,907		727,212		331,677
Deferred items and other long-term liabilities		53,058		49,631		40,147
Commodity derivative liabilities		19,923		2,090		26,002
Long-term debt non-recourse		47,934		56,277		64,382
Long-term debt		281,496		133,195		87,150
Minority interest		12,471		12,219		13,120
Shareholders’ equity		395,681		344,364		305,009
	$	1,754,470	$	1,324,988	$	867,487

2

The Andersons, Inc.
Consolidated Statements of Income
(Unaudited)
	Three Months ended				Six Months ended
	June 30				June 30
(in thousands, except for per share amounts)	2008		2007		2008			2007
Sales and merchandising revenues	$	1,100,700	$	634,214	$	1,813,701		$	1,040,717
Cost of sales and merchandising revenues		980,363		562,378		1,641,123			924,496
Gross profit		120,337		71,836		172,578			116,221
Operating, administrative and general expenses		49,109		40,196		88,695			77,947
Allowance for doubtful accounts receivable		864		411		2,569			644
Interest expense		8,521		4,190		17,643			9,212
Other income / gains:
Equity in earnings of affiliates		7,781		4,823		16,420			7,655
Other income, net		2,155		7,068		5,039			16,941
Minority interest in net (income) loss of subsidiary		682		433		(253	)		516
Income before income taxes		72,461		39,363		84,877			53,530
Income taxes		26,835		13,875		31,428			18,803
Net income	$	45,626	$	25,488	$	53,449		$	34,727
Per common share:
Basic earnings	$	2.53	$	1.43	$	2.96		$	1.96
Diluted earnings	$	2.48	$	1.40	$	2.91		$	1.90
Dividends paid	$	0.0775	$	0.0475	$	0.1550		$	0.0950
Weighted average shares outstanding-basic		18,065		17,792		18,046			17,761
Weighted average shares outstanding-diluted		18,380		18,245		18,383			18,260

3

Segment Data
	Grain &				Plant		Turf &
	Ethanol		Rail		Nutrient		Specialty		Retail			Other			Total
Quarter ended June 30, 2008
Revenues from external customers	$	695,787	$	42,941	$	273,501	$	35,915	$	52,556		$	—		$	1,100,700
Gross Profit		29,195		9,100		58,396		7,266		16,380			—			120,337
Other income / Equity in earnings of affiliates		9,002		340		181		96		161			156			9,936
Operating income (loss)		19,994		4,874		47,369		1,882		3,360			(5,018	)		72,461
Quarter ended June 30, 2007
Revenues from external customers	$	323,580	$	42,445	$	182,908	$	30,394	$	54,887		$	—		$	634,214
Gross Profit		15,254		10,901		23,391		5,167		17,123			—			71,836
Other income / Equity in earnings of affiliates		8,361		431		300		133		158			2,508			11,891
Operating income (loss)		11,981		6,902		17,117		706		3,616			(959	)		39,363
	Grain &				Plant		Turf &
	Ethanol		Rail		Nutrient		Specialty		Retail			Other			Total
Six months ended June 30, 2008
Revenues from external customers	$	1,194,910	$	77,952	$	378,970	$	75,576	$	86,293		$	—		$	1,813,701
Gross Profit		40,574		20,251		72,074		14,192		25,487			—			172,578
Other income / Equity in earnings of affiliates		20,175		518		327		189		308			(58	)		21,459
Operating income (loss)		22,227		11,300		54,909		3,882		(17	)		(7,424	)		84,877
Six months ended June 30, 2007
Revenues from external customers	$	567,523	$	68,361	$	249,468	$	66,698	$	88,667		$	—		$	1,040,717
Gross Profit		30,674		18,530		28,816		11,238		26,963			—			116,221
Other income / Equity in earnings of affiliates		17,175		522		456		195		318			5,930			24,596
Operating income (loss)		22,151		9,910		17,548		2,506		1,329			86			53,530

4